American Marketer


85pc of luxury marketers to significantly increase spend on digital: report

January 10, 2013


The majority of luxury marketers are planning to increase their spend on digital and agree that by 2015 digital will be the most influential channel, according to a Luxury Interactive survey.

The 2013 State of Luxury Digital Marketing survey found that 85 percent of luxury marketers will significantly increase their spend on digital media in 2013 and 72 percent will grow their social media spend. These increases are likely influenced by the fact that affluent consumers are becoming more active on social media and other digital platforms.

“Affluent customers, in particular, are smartphone and tablet-enabled and are increasingly always connected,” said Marko Z. Muellner, senior director of marketing at Shoplgniter, Portland, OR.

“As a result, luxury marketers need to find additional ways to ensure that they reach always-connected affluent consumers in their marketing efforts,” he said. “The data from the survey illustrates that they are beginning to do just that.”

The State of Luxury Digital Marketing 2013 survey contained 20 questions that were given to approximately 150 marketing executives at luxury brands during the Luxury Interactive conference Oct. 15-17, 2012.

The Luxury Interactive conference is produced by global research and conference company Worldwide Business Research. The Luxury Interactive team worked with social product promotion firm ShopIgniter to craft the questionnaire.

Digital world

Eighty percent of marketers reported that their digital spending in 2012 was more than their digital spending on 2011, according to the survey.

Sixty-three percent of luxury marketers predict that digital marketing will be more important than print, television or loyalty programs by 2015.

Also, 46 percent of luxury marketers are currently working to improve their mobile marketing strategies.

In 2013, luxury marketers should make sure that their digital campaigns are competitive since this is where they will be engaging with consumers the most.

“Luxury marketers need to continue to push the envelope on how they can effectively reach customers across devices, get in their social streams and essentially interact with consumers where they are,” Mr. Muellner said.

“Affluent customers are increasingly expecting quality interactions with luxury brands across their touch points, regardless of medium,” he said.


Many luxury marketers also said in the survey that their spending on social media will increase in the upcoming years.

Seventy-seven percent of luxury marketers said that they spent more on social media in 2012 compared to 2011, according to the survey.

Approximately, three-quarters of those who responded said that they allocate less than 20 percent of their digital budget to social media.

However, 95 percent of luxury marketers surveyed said that they are actively engaging users on Facebook. This is a higher percentage compared to 85 percent engaging with users on Twitter and 60 percent engaging with users on Pinterest.

Burberry's Facebook page

For engagement methods on social media platforms, 81 percent of marketers are posting product imagery, 75 percent are using video and 60 percent are pushing new product launches, per the survey.

Nordstrom shows off shoes via Facebook

The majority of luxury marketers are satisfied with their social marketing efforts, but 63 percent said that they are working to improve in this area.

In today’s world, marketers that are not active on social media are losing potential customers and user engagement.

Marketers must always look to do more with the ever-changing digital, social and mobile platforms to keep up with other luxury marketers.

“If you are a luxury marketer who does not have social media, social-mobile and increased digital marketing activity in sight, you will quickly fall behind your peer group,” Mr. Muellner said.

Final take

Erin Shea, editorial assistant on Luxury Daily, New Y ork